(Reuters) -Albemarle, the world's largest producer of lithium for rechargeable batteries, posted a surprise second-quarter profit on Wednesday, helped by rising demand for the metal.

Shares of the company rose 5.6% after the bell.

Lithium's use in electric vehicles, large-scale battery storage and other electronic applications has grown rapidly, with demand up 24% last year and likely to grow 12% annually for the next decade, according to data from consultancy Fastmarkets.

However, prices have fallen more than 90% in the past two years due in part to oversupply in China, fueling layoffs, corporate buyouts and project delays across the globe.

The Charlotte, North Carolina-based company reported an adjusted profit of 11 cents per share, compared with analysts' expectations of 82 cents loss per share, according to data compiled by LSEG.